Cross Country Healthcare Reports 33.5% Revenue Decline and $14.6 Million Net Loss for Fiscal Year 2024

Cross Country Healthcare, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue falling by 33.5% to $1.34 billion, down from $2.02 billion in 2023. The company attributed this decrease primarily to reduced demand in its Nurse and Allied Staffing segment, which saw a 37.8% drop in revenue, largely due to a decline in billable days and average bill rates. In contrast, the Physician Staffing segment experienced growth, with revenue increasing by 11.4% to $198.6 million, driven by a 5.8% rise in billable days.

The company's net loss attributable to common stockholders for 2024 was $14.6 million, a stark contrast to the net income of $72.6 million reported in the previous year. This shift was influenced by various factors, including a notable increase in credit loss expenses, which rose to $21.4 million due to a bankruptcy filing by a major customer. Additionally, the company incurred $6.7 million in legal and other losses, primarily related to class action settlements, and recorded $2.9 million in impairment charges.

In terms of operational metrics, Cross Country Healthcare reported an average of 8,205 full-time equivalent (FTE) employees in its Nurse and Allied Staffing segment, a decrease of 24.2% from the previous year. The average revenue per FTE per day also declined by 18.2%, reflecting the tightening market conditions. Conversely, the Physician Staffing segment saw an increase in days filled and revenue per day filled, indicating a positive trend in that area.

Strategically, Cross Country Healthcare is in the process of merging with Aya Healthcare, with the merger agreement signed on December 3, 2024. The merger is expected to close in the second half of 2025, pending regulatory approvals. This move is part of the company's broader strategy to enhance its market position and operational capabilities. The company has also been focusing on digital transformation initiatives, including the launch of new technology solutions aimed at improving operational efficiency and customer engagement.

Looking ahead, Cross Country Healthcare anticipates continued challenges in the staffing market, particularly as hospitals adjust their labor needs post-pandemic. The company remains committed to expanding its customer base and enhancing its service offerings while navigating the competitive landscape of the healthcare staffing industry. Despite the current downturn, management believes that strategic investments and the upcoming merger will position the company for future growth.